Trump Escalates 'Big Tariff' Threat as UK Stands Firm on Tech Tax

US President Donald Trump has ramped up pressure by threatening 'big tariffs' on Britain if it does not scrap its 2% digital services tax on US tech giants like Apple, Google, and Meta, with Downing Street insisting the tax stays amid weak growth and an IMF 0.5-point cut to 2026 UK forecasts. This builds on his April 23 Telegraph interview, heightening trade tensions where the US represents 17% of UK trade. Sterling (GBPUSD) faces downside risk and volatility spikes from potential retaliation, Brexit-like repricing, and risk-off flows across FX and equities.